Danske Research discusses EUR/USD outlook and maintains its target at 1.09, through Q3.

"In our view, there is an economic/political/debt deflation linked tail risk, which is holding down EUR/USD.If we enter a period of economic and political stabilization, the absence of realized but currently priced-in risk could add to EUR strength. In our view, the near-term may indeed prove to be such, which is why we keep our forecast unchanged at 1.09," Danske notes.

"Talks of fiscal and monetary tightening by year-end and lack of global coordination could eventually be renewed drivers for EUR weakness," Danske adds.